Best Bitcoin IRAs of November 2023

Q: How do bitcoin IRAs work?

Bitcoin IRAs work much like normal IRAs, except you are investing in bitcoin rather than assets like stocks or exchange-traded funds. The behind-the-scenes mechanics may also differ. Rather than a one-stop shop where all trades are carried out, IRAs commonly partner with exchanges or third-party apps where transactions are carried out. Storage of assets is also different in the digital realm, and it varies between IRA providers. Some use cold storage, generally seen as more secure, while others instead use hot wallets, which are connected to the internet. Customers should do their research about these storage options, as there have been many hacks in the crypto space over the years.

Q: Are bitcoin IRAs safe?

Bitcoin is an extremely volatile asset, so it can never be described as safe. The potential returns may be greater than those of traditional asset classes, but that is a double-edged sword. With greater potential reward comes greater risk. In addition to the volatility of the asset itself, most bitcoin IRAs are also new. That means there is less of a track record and customers have less of an ability to assess the companies. That is of particular concern in the realm of digital assets, where security is pivotal. To summarize, there are several risks with the asset itself along with these new IRA offerings.

Best bitcoin IRAs of November 2023

Dan Ashmore

BLUEPRINT

Updated 3:15 p.m. UTC Nov. 1, 2023

Individual retirement accounts are tax-advantaged investment accounts designed to help people save for retirement.

You can invest in a wide range of assets with an IRA. Recently, bitcoin IRAs have become available as the cryptocurrency has surged into the mainstream consciousness.

But there are many risks with cryptocurrency investing. So you should ensure you have a well-balanced portfolio. Bitcoin has only been around since 2009, and its price has vacillated wildly.

For evidence of those risks, look no further than the year following the all-time high of close to $69,000 in November 2021. One year later, bitcoin traded at $15,800, a brutal fall of 77%.

An overzealous allocation of bitcoin could quickly change your retirement plans from a beach on a Caribbean island to an extra 10 years in the workforce. Still, some investors want the broader diversification that comes with investing in cryptocurrency, making bitcoin IRAs a consideration.

Using an IRA to invest in bitcoin has benefits:

Depending on the type of IRA, you can build wealth on a tax-deferred or tax-free basis.
The long-term nature of retirement accounts may help you weather the volatility of bitcoin if you believe in its future.

But investing in bitcoin through an IRA also has drawbacks. Tax treatment of IRAs may be a con for some investors.

“In an IRA, you cannot offset losses with gains that could be achieved in a brokerage account for tax-loss harvesting purposes,” says Laurie Itkin, a financial advisor and wealth manager at Coastwise Capital Group.

You also can’t generate investment income as you can with stock dividends, bond interest and real estate rents, Itkin adds. Instead, your profit is dependent on capital appreciation. Also, the fees are typically much higher than those of other mediums through which you can buy bitcoin, such as exchanges.

Bitcoin IRAs may suit some investors but are less appropriate for others. Let’s take a look at some of the best options on the market.

Best bitcoin IRAs November 2023
Alto CryptoIRA
BitIRA
Coin IRA
My Digital Money
iTrustCapital
Compare bitcoin IRAs
Methodology
Final verdict
Frequently asked questions (FAQs)

Why trust our investing experts

Experienced analysts selected our product selections based on a screening of several stringent, must-have metrics. Advertisers do not influence our editorial content. You can read more about our methodology below.

10+ bitcoin IRA companies reviewed.
5-step fact-checking process.
3-step editorial review.

USA TODAY Blueprint may earn a commission from this advertiser.

Learn More

Via Bitcoin IRA's Website

Best bitcoin IRAs November 2023

What you should know

Alto CryptoIRA is a crypto-focused IRA with a massive array of digital assets, including bitcoin.

It has integrated with Coinbase to offer investors the ability to buy and sell more than 200 crypto assets on the Coinbase Exchange.

Alto also has another product, Alto IRA, that allows investors to purchase alternative assets like venture capital, art, real estate funds and private equity.

Pros and cons

Pros

Small minimum investment of $10.
Undirected cash is kept in FDIC-insured accounts.
Coinbase is a reputable custodian and publicly listed company.

Cons

Some investments are reserved for accredited investors.
Due to integration with Coinbase, Hawaii residents are not eligible.

What you should know

BitIRA offers customers the ability to invest in 17 cryptocurrencies, including bitcoin.

It is a full-service, “white glove” solution that is best suited for those looking for convenience and the possibility of human assistance.

The trade-off for this increased level of customer care is that its fees are much higher than those of many of its rivals, with the transaction fee rising to a hefty 5%. This is large enough to eat away substantially at the end returns for customers.

There is also a strong focus on security. BitIRA offers cold storage, which means your bitcoin is stored offline, and cash deposits are FDIC-insured up to $3.75 million per account.

Security is particularly important in the world of crypto, which has seen several high-profile scandals over the last couple of years concerning the custody of customer assets. For some investors, that may justify this IRA’s higher fees.

Pros and cons

Pros

Use of cold storage for the custody of assets, enhancing security.
FDIC insurance on cash deposits.
Full white-glove solution with increased customer care.

Cons

Fees are extremely high, rising to 5%.
High minimum investment of $5,000.

What you should know

Coin IRA was formed in 2017 and was one of the first companies to offer bitcoin IRAs.

It also recently added non-IRA accounts to its product offerings, making it one of the few companies we analyzed to offer trading outside IRAs. It also allows investors to purchase three precious metals: gold, silver and platinum.

Pros and cons

Pros

Easy-to-use platform.
Ability to set automatic trades at certain prices.
No account setup or maintenance fees.

Cons

High minimum investment of $5,000.
Trading fees are higher than those of some rivals.

What you should know

My Digital Money is another IRA provider that offers customers the ability to trade in cash.

The U.S.-based platform is younger than many of its counterparts on this list, having launched in April 2021. Thus, investors should exercise more caution regarding My Digital Money compared to its rivals, especially as so little information is available on the company.

Additionally, My Digital Money is partnered with Genesis Capital. Genesis is a crypto lending platform that filed for bankruptcy in January after getting caught up in the contagion that followed the spectacular collapse of crypto exchange FTX.

Genesis currently serves as My Digital Money’s liquidity provider, meaning trades are routed through its platform. Importantly, My Digital Money confirmed that Genesis does not have custody of My Digital Money’s customer assets.

However, it is certainly a point worth mentioning and a stark reminder of the importance of security and asset storage in the opaque world of cryptocurrency.

My Digital Money has also advised it is seeking a new liquidity provider, an unsurprising development given the mere presence of the Genesis name will likely cause most customers to look elsewhere in light of recent events.

Pros and cons

Pros

Relatively low minimum investment of $1,000.
Free practice accounts are offered to get used to trading and the platform.

Cons

Transaction fees can be high, at 1.9% for accounts under $25,000.
Newcomer in the space, meaning less information and a smaller track record.
Partnered with Genesis, a crypto platform that filed for bankruptcy earlier this year.

What you should know

iTrustCapital is another popular bitcoin IRA. The platform was founded in 2018 and allows access to 34 cryptocurrencies as well as gold and silver.

Customers should note, however, that crypto assets are stored in custodial accounts, whereas many rivals use cold storage. That means users could be at greater risk of hacks and other security breaches, often seen in the cryptocurrency space.

Pros and cons

Pros

No monthly or setup fees.
Wide range of cryptocurrencies offered.

Cons

Custodial wallet, meaning users must trust the platform to store assets safely.
Can’t fund IRA with crypto you own, only U.S. dollars.

Compare bitcoin IRAs

Company	Account minimum	Fees	Investments
Alto CryptoIRA	$10	1% trading fee, $50 account closing fee, $25 outbound wire fee	200+ cryptocurrencies
BitIRA	$5,000	Up to 5%	17 cryptocurrencies
Coin IRA	$5,000	1.25% buy fee, 1% sell fee	19 cryptocurrencies and three precious metals
My Digital Money	$1,000	1.9% transaction fees (<$25K)	19 cryptocurrencies
iTrustCapital	$1,000	1% trading fee	34 cryptocurrencies and two precious metals

Methodology

We listed popular Bitcoin IRAs in a directory format to serve as a point of reference for the reader, before assessing some of the pros and cons of each.

To screen the IRAs, we limited our assessment to those that offer a minimum investment of $5,000 or less, meaning small diversification into the asset would be possible, following our discussion of the risks of bitcoin in the introduction.

We also limited our analysis to IRAs that offer 5% crypto transaction fees or inexpensive initial account setup fees.

Why other IRAs didn’t make the cut

Some popular IRAs that did not make the cut include those from BlockMint, Broad Financial and BitTrust.

These options had account minimums above $5,000, transaction fees north of 5% and/or expensive initial setup fees.

Final verdict

Bitcoin IRAs are new, so it is more difficult to assess them than other financial products.

Nonetheless, the IRA structure provides attractive tax benefits, which means the demand for investing in bitcoin through this medium is increasing.

But it is paramount to educate yourself before investing in such a volatile asset. It would be wise to go the conventional route, such as through a crypto exchange, before diving in through less-heralded IRA companies.

Bitcoin’s volatility means the most important thing for investors is to diversify and not be overallocated. Invest only what you can afford to lose as bitcoin flails in an unforgiving bear market.

Frequently asked questions (FAQs)

Bitcoin IRAs work much like normal IRAs, except you are investing in bitcoin rather than assets like stocks or exchange-traded funds.

The behind-the-scenes mechanics may also differ. Rather than a one-stop shop where all trades are carried out, IRAs commonly partner with exchanges or third-party apps where transactions are carried out.

Storage of assets is also different in the digital realm, and it varies between IRA providers.

Some use cold storage, generally seen as more secure, while others instead use hot wallets, which are connected to the internet. Customers should do their research about these storage options, as there have been many hacks in the crypto space over the years.

Bitcoin is an extremely volatile asset, so it can never be described as safe. The potential returns may be greater than those of traditional asset classes, but that is a double-edged sword. With greater potential reward comes greater risk.

In addition to the volatility of the asset itself, most bitcoin IRAs are also new. That means there is less of a track record and customers have less of an ability to assess the companies.

That is of particular concern in the realm of digital assets, where security is pivotal. To summarize, there are several risks with the asset itself along with these new IRA offerings.